Kagadi District is facing mounting service delivery challenges following what leaders describe as the Ministry of Finance’s failure to remit Shs521 million in locally collected revenue for the 2024/2025 financial year.
District officials said repeated reminders to the ministry have gone unanswered, leaving sub-counties and town councils unable to implement key activities.
Mr John Isingoma, the town clerk of Kagadi Town Council, said more than Shs120 million expected between January and June last financial year has not been released.
‘We still demand finances from January to June of the last financial year. As of today, we owe our debtors over Shs150 million,’ he said.
According to Mr Isingoma, the problem intensified after the revenue collection system was automated.
‘When we were enrolled on the automated system, we were promised a two-week return period. But the remittances are delayed by three weeks or longer. These delays cripple planned activities and leave us in debt,’ he said.
He added that the prolonged delays have damaged the council’s credibility with contractors and service providers.
‘We have lost trust among our debtors due to delayed payments. Garbage collection is now at its slowest because trucks lack fuel, and collectors are threatening to abandon work,’ he said.
Mr Geoffrey Businge, the LC3 chairperson of Kagadi Town Council in Buyaga East, said the financial gap has left major services unattended.
‘As leaders, we are struggling to execute community mobilisation, maintain cleanliness, and monitor construction projects. All these depend on local revenue,’ he said.
Mr Businge added that even council sittings suffer because councillors lack transport facilitation.
‘Councillors trek long distances to attend meetings. Without transport or allowances, many no longer attend. Before automation, some collectors, especially in the taxi sector, misused funds, but that has greatly reduced,’ he noted.
In Kyaterekera Town Council, Buyaga West, the LC3 chairperson, Mr Yosam Musisi, said the delays have disrupted the entire planning cycle.
‘We draft budgets, but they remain unimplemented due to limited funds on the accounts. Our plans end up unfulfilled,’ he said.
Mr Musisi added that services such as street lighting, water access, and maintenance of health facilities have been affected. Kagadi District has 35 administrative units, nine town councils and 26 sub-counties.
Appeal Responding to the concerns, Mr James Ogwanga, the head of Local Revenue and Principal Financial Analyst at the Local Government Commission, said the Finance ministry had already disbursed collected funds to districts. He advised affected local governments to formally seek clarification.
The Kagadi District Chief Finance Officer (CFO), Mr Vicent Natugonza, confirmed they are still awaiting remittances.
‘Kagadi Town Council alone is demanding more than Shs100 million,’ he said.
Mr Natugonza noted that the IRS and Helobrage automated revenue systems have improved accountability by introducing Payment Reference Numbers (PRNs), eliminating door-to-door collections.
However, he said the problem stems from the district collecting more revenue than its approved budget.
‘Government couldn’t return the money immediately because budgets for councils were already financed. The excess funds remained on the central account,’ he explained.
The unremitted Shs521 million, he said, is excess revenue that must be included in a supplementary budget before it can be released.